Tata Motor’s market cap can reach $30 billion'
Wednesday, 31 October 2012
NEW DELHI: Indian automaker Tata Motors has the potential to reach a market cap of $30 billion by fiscal 2017, Investment bank Goldman Sachs has said in its report.
The auto maker's current market capitalisation is $13.8 billion. The bank is also of the opinion that the cash flow of the company can nearly double during these four years, The Economic Times reported Wednesday.
In order to achieve the $30 billion market cap, Tata's Jaguar Land Rover (JLR) unit would need to move to a new platform for its existing models such as Range Rover and Discovery with a lightweight aluminium architecture, thus improving key factors such as fuel efficiency or pricing, says Goldman.
JLR would also need to make inroads into smaller engine and lower priced vehicles, as well as enter more premium segments, Goldman argued.
The bank has also highlighted a few challenges that the company faces. These include getting consumers to buy into the brand, tightening regulations in key markets such as Europe, and overcoming macro-economic uncertainties such as foreign exchange volatility. (QNA)